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Management Reports Aug 11, 2014

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Management Reports

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DIRECTORS' REPORT

1 st Semester 2014

INTRODUCTION
3
STOCK EXCHANGE EVOLUTION
5
GROUP ACTIVITY7
FINANCIAL REVIEW
8
SECOND SEMESTER OUTLOOK11
CORPORATE GOVERNANCE12
LEGAL MATTERS13
STATEMENT UNDER ARTICLE 246, PARAGRAPH 1, C) OF THE SECURITIES CODE15
DECLARATION OF RESPONSABILITY
15
CLOSING REMARKS
16

To the shareholders,

The Board of Directors of F. Ramada Investimentos, S.G.P.S., S.A. ("F. Ramada Investimentos") pursuant to the legal requirements hereby presents its Board of Director's Report for the first semester of 2014.

INTRODUCTION

F. Ramada Investimentos was incorporated on June 1, 2008, as a result of the demerger of the steel and storage systems business from Altri, S.G.P.S., S.A. ("Altri"). The incorporation of the Company resulted from a projected reorganization in order to separate two autonomous business units, corresponding to the activity of management of shareholdings, respectively, in the pulp and paper sector and in the steel and storage systems sector. Therefore, Altri remained with the management of the pulp and paper business unit and proceeded to the incorporation of a new company - F. Ramada Investimentos, S.G.P.S., S.A. ("F. Ramada Investimentos") – autonomous business unit corresponding to the activity of equity investments management in the steel sector and storage systems.

Currently, F. Ramada Investimentos is the parent company of a group of companies ("F. Ramada Group") that, together, develop their activity in the steel market, where stands the subsegment of steel for molds, the storage systems activity and the activity related with equity investments regarding stakes held of less than 50%. F. Ramada Investimentos also controls F. Ramada II, Imobiliária, S.A., focused on the management of real estate assets.

The steel activity, with a prominent position in the domestic market, is performed by two companies: F. Ramada Aços and Universal Afir. Storage systems activity is performed by four companies: F. Ramada Estruturas, largest manufacturer of storage systems in Portugal, and where all group production is concentrated, Storax Equipements with head office in France, Storax Racking with head office in the United Kingdom and Storax Benelux with head office in Belgium.

The activity of equity investments management includes the stake held in Base Holding, Consumo em Verde and Converde.

The ownership structure of F. Ramada Group, as of 30 June 2014, can be presented as follows:

STOCK EXCHANGE EVOLUTION

F. Ramada Investimentos' share price closed the first semester of 2014 at 2.98 Euro per share, which represents an increase of 115% when compared with the end of 2013.

During the first semester of 2014, F. Ramada Investimentos' shares were traded at a maximum price of 2.997 Euro per share and at a minimum price of 1.41 Euro per share. In total, 1,790,266 shares of F. Ramada Investimentos were traded in the first half of 2014.

F. Ramada Investimentos' stock price evolution

The main events that marked the stock price evolution of F. Ramada Investimentos' shares during the first semester of 2014 may be described as follows:

According to the Group announcement made on 6 March 2014, the Group announced its 2013 financial performance, presenting a consolidated net profit of 6.2 million Euro. Consolidated EBITDA (earnings before interests, taxes, depreciation and amortization) amounted to 14.5 million Euro;

  • In the announcement statement made on 24 April 2014, F. Ramada Investimentos informed the market about the resolutions of the Shareholders General Meeting held on that date, where it was approved, among other decisions, the proposal for dividends distribution, corresponding to 0.125 Euro per share;
  • On May 7, 2014, the Company informed the market that dividends for the year 2013 would be paid from May 22 onwards;
  • At the same date, the results of F. Ramada Group related with the first quarter of 2014 were announced to the market, amounting the net profit to 1.7 million Euro. Consolidated EBITDA reached 3.8 million Euro and consolidated total revenues amounted to 27.8 million Euro.

GROUP ACTIVITY

F. Ramada Group is composed by nine companies that, together, develop activity in the industrial and special steel markets, storage systems and management of real estate assets. In addition to these activities F.Ramada Investimentos has made investments in companies whose activities are complementary means of diagnosis and treatment and production of biological fungicide.

The special steel activity transform and sells steel and non-ferrous alloys mainly intended to the construction of machines and their components and to the production of tools (dies, sharps and moulds), having as principal destination markets that manufacture moulds for plastic, components for the automotive industry and capital goods.

This activity is enabled to provide to its customers a wide range of services, among which we should highlight the heat treatments, where the Company has a deep know-how, as well as modern technical and logistical resources. Thus, the Group supplies all the technical assistance required by its customers, in relation to whom it has followed a strategy of permanent quality improvement, both, concerning the services rendered and the products sold.

In the first half of 2014, the turnover of the steel activity kept the growth levels recorded in the homologous period of 2013.

For this growth contributed the increase in activity on the sector of steel molds manufacturers, one of the Portuguese sectors with largest exporting aptitude.

The activity on the machining sector has been growing and revealing the opportunity of the investments made in 2013. Sales in the components sectors to the automotive and general mechanics sectors had a recovery when compared to the same period of the previous year. The implementing of new products and services contributed to the growth of sales to these sectors of activity.

Steel price remained stable throughout the first half of 2014 with no predictions to change until the end of the year.

Steel activity operates, essentially, in the domestic market, which represented 97% of its sales in the first half of 2014.

A customer satisfaction enquiry was performed, and once more excellent results were achieved. A positive evaluation in almost 85% of the obtained answers, having improved when compared to the last performed enquiry.

The storing systems activity, with an experience of more than 50 years, has a deep knowledge in all areas of storing, from the simple metallic rack to the more complex automated warehouse.

The constant innovation, the development of new products and solutions, and the competence of the technical teams are the growing success of this business.

In the first half of 2014, storage systems activity had an increase in turnover compared to the same period in 2013. The external market remains the main growth driver of this activity, representing 86% of turnover.

This growth was supported by the exportation to more than 50 countries, the growth in new non-European markets and the strong investment in technological innovation.

The activity of management of real estate assets is developed by the company F. Ramada Imobiliária.

The annual income obtained from the rent of forest land represents more than 95% of total revenues of F. Ramada Imobiliária.

FINANCIAL REVIEW

Consolidated financial information of F. Ramada Investimentos was prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted in European Union.

Main indicators

1S 2014 1S 2013 Var. %
Sales and services rendered 59,083 50,064 18.0%
Other income 368 216 70.2%
Total income 59,451 50,281 18.2%
Cost of sales 32,550 27,470 18.5%
External supplies and services 10,613 8,342 27.2%
Payroll 7,490 6,510 15.1%
Other costs 1,087 1,117 -2.7%
Total costs (a) 51,740 43,438 19.1%
EBITDA (b) 7,712 6,842 12.7%
EBITDA margin 13.0% 13.6%
Amortization and depreciation 802 621 29.0%
EBIT (c) 6,910 6,221 11.1%
EBIT margin 11.6% 12.4%
Financial results -1,878 -1,971 -4.7%
Net profit before income tax 5,032 4,249
Income tax -1,585 -1,275
Net profit attributable to shareholders
of parent company
3,447 2,975 15.9%

Amounts in thousands Euro

  • (a) Operating costs excluding amortization, financial expenses and income tax
  • (b) EBITDA= Earnings before interest income, tax, depreciation and amortization
  • (c) EBIT = Earnings before interests and income tax

Total turnover of Ramada Group, during the first semester of 2014, amounted to 59,451 thousand Euro, representing an increase of 18.2% compared to the total turnover to the homologous period.

Total costs, excluding amortisations, financial expenses and taxes, amounted to 51,740 thousand Euro, representing an increase of 19.1% in relation to the first half of 2013.

BOARD OF DIRECTORS' REPORT – 1 st SEMESTER 2014

RELATÓRIO DO CONSELHO DE ADMINIST

In the first semester of 2014, EBITDA reached 7,712 thousand Euro, representing an increase of 12.7% when compared to the same period in 2013. EBITDA margin was 13.0%, showing a slight decrease when compared with 2013, with a value of 13.6%.

The operating profit (EBIT) in the first semester of 2014, amounted to 6,910 thousands of Euro, representing an increase of 11.1% when compared to the 6,221 thousand Euro in 2013.

Financial losses amounted to 1,878 thousand Euro, representing an improvement of 4.7% in relation to the prior year.

Net profit of Group F. Ramada, in the first semester of 2014, amounted to 3,447 thousand Euro, 15.9% higher than the net profit recorded in the same period in 2013.

In accordance with the origin of the turnover generated by F. Ramada Group, two business segments were defined: i) Industry, which aggregates special steels activity, the storage systems and equity investments managing activity and ii) Real Estate, focused on the management of Group real estate assets and forest, which are rented to third parties.

Industry

1S 2014 1S 2013 Var. %
Total income 56,336 47,240 19.3%
Total costs (a) 51,114 42,894 19.2%
EBITDA ( b)
EBITDA margin
5,222
9.3%
4,346
9.2%
20.1%
EBIT (c) 4,598 3,955 16.3%
EBIT margin 8.2% 8.4%
Financial results (449) (327) 37.4%
Net profit before income tax 4,149 3,628 14.4%

(amounts in thousands Euro)

(a) Operating costs excluding amortization, financial expenses and income tax

(b) EBITDA= Earnings before interests, tax, depreciation and amortization

(c) EBIT = Earnings before interests and income tax

During the first semester of 2014 the total income for the industry segment amounted to 56,336 thousand Euro, representing an increase of 19.3% compared to total income for the same period in 2013.

Industry segment EBITDA in the first half of 2014 amounted to 5,222 thousand Euro, which represents an increase of 20.1% when compared with 4,346 thousand Euro achieved in the same period in 2013. Industry segment EBITDA margin went from 9.2% in 2013 to 9.3% in 2014.

Industry segment EBIT in first semester of 2014 was 4,598 thousand Euro, representing an increase of 16.3% compared to the 3,955 thousand Euro in 2013. EBIT margin went from 8.4% to 8.2% in 2014.

Real Estate

1S 2014 1S 2013 Var. %
Total income 3,116 3,040 2.5%
Total costs (a) 626 545 14.9%
EBITDA ( b) 2,490 2,496 -0.2%
EBIT (c) 2,312 2,266 2.0%
Financial results (1,430) (1,645) -13.1%
Net profit before income tax 883 621 42.0%

(amounts in thousands Euro)

(a) Operating costs excluding amortization, financial expenses and income tax

(b) EBITDA= Earnings before interests, tax, depreciation and amortization

(c) EBIT = Earnings before interests and income tax

Total income for the Real Estate segment in the first half of 2014 was 3,116 thousand Euro, representing an increase of 2.5% compared with the same period of 2013.

The rents obtained from the long-term lease of forest land represent more than 95% of total income of the Real Estate segment.

Real Estate segment EBITDA in the first half of 2014 amounted to 2,490 thousand Euro, representing a slightly decrease (0.2%) in relation to the same period in 2013.

The operational results (EBIT) amounted to 2,312 thousand Euro, which represents a growth of 2.0% comparing to 2,266 thousands Euro reached in the first half of 2013.

The financial results of the Real Estate segment in the first half of 2014 were negative in 1,430 thousand Euro, which represents an improvement of 13.1% comparing to 1,645 Euro thousand Euro negative in the same period of 2013.

Investments and debt

Ramada Group investments in the first half of 2014 amounted to 1,294 thousand Euro, which include 897 thousand Euro in equity investments.

The nominal net debt of the Ramada Group as of 30 June 2014, deducted of own shares in portfolio, amounting to 1,641 thousands Euro, reached 68,830 thousand Euro. As of 31 December 2013 it was 68,772 thousand Euro.

SECOND SEMESTER OUTLOOK

The activity of special steels is strongly related with the industries of automobile components and manufacture of moulds for plastics. Everything points out that the growth felt in the first semester of 2014 on the tools and mould sector will continue until the end of the year. In 2013 new products and services were launched/released accompanied by significant investments, some already concluded and other with predicted date of conclusion until the end of 2014.The conjugation of these factors allows us to anticipate a second semester with good activity overcoming the forecasts for the current year.

The activity of Storage Systems is linked to the development and modernization of logistics of the companies, and strongly focused in the external market. Sales growth in new markets outside Europe, technological innovation and the launch of new solutions leads us to predict an increase of business volume in 2014 when compared to the previous year.

CORPORATE GOVERNANCE

In accordance with the current legislation, the Company is not required to provide information regarding corporate governance, since this information is only compulsory together with the annual management report. The detailed annual report of corporate governance is included in the Financial Reporting of 2013 and it is available in our site (www.ramadainvestimentos.pt).

Regarding this subject, it is important to mention that the Shareholders General Meeting which took place on the 24th of April of 2014 appointed the corporate boards for the triennium of 2014/2016.

For the Board of Directors there were appointed for the triennium of 2014/2016:

  • João Manuel Matos Borges de Oliveira President
  • Paulo Jorge dos Santos Fernandes Member
  • Pedro Macedo Pinto de Mendonça Member
  • Domingos José Vieira de Matos Member
  • Pedro Miguel Matos Borges de Oliveira Member
  • Ana Rebelo Carvalho Menéres de Mendonça Member

For the Statutory Audit Board the following members were appointed:

  • Pedro Nuno Fernandes de Sá Pessanha da Costa President
  • André Seabra Ferreira Pinto Member
  • José Guilherme Barros Silva Member
  • Luis Filipe Alves Baldaque de Marinho Fernandes Substitute

The Statutory Auditor appointed for the triennium of 2014/2016 was Deloitte & Associados, SROC S.A., represented by António Manuel Martins Amaral or Miguel Nuno Machado Canavarro Fontes.

LEGAL MATTERS

Own Shares

Pursuant to the requirements of article 66 and of nr 2 of article 324 of the Commercial Companies' Code (Código das Sociedades Comerciais), F. Ramada Investimentos inform that as of 30 June 2014 it held 2,564,145 own shares that representing 9,999996% of the share capital.

Shares held by the corporate boards of F. Ramada Investimentos

Pursuant to the requirements of article 447 of the Commercial Companies' Code, F. Ramada Investimentos Directors inform that, as of 30 June 2014, they held the following shares:

João Manuel Matos Borges de Oliveira (a) 4,895,721
Paulo Jorge dos Santos Fernandes (b) 3,837,582
Domingos José Vieira de Matos 2,550,131
Pedro Macedo Pinto de Mendonça 213,125
Ana Rebelo de Carvalho Menéres de Mendonça (c) 4,514,271
Pedro Miguel Matos Borges de Oliveira 1,402,072

(a) – the 4,895,721 shares correspond to the total shares of F. Ramada - Investimentos, S.G.P.S., S.A. held by CADERNO AZUL – S.G.P.S., S.A., of which the Director João Manuel Matos Borges de Oliveira is shareholder and director. (b) – the 3,837,582 shares correspond to the total shares of F. Ramada - Investimentos, SGPS, S.A. held by ACTIUM CAPITAL – SGPS, S.A., of which the Director Paulo Jorge dos Santos Fernandes is dominant shareholder and director. (c) – the 4,514,721 shares correspond to the total shares of F. Ramada - Investimentos, SGPS, S.A. held by PROMENDO – SGPS, S.A., of which the Director Ana Rebelo de Carvalho Menéres de Mendonça is director and dominant shareholder.

As of 30 June 2014, the Statutory Auditor, the members of the Statutory Audit Board and the members of the Board of the General Shareholders' Meeting held no shares of F. Ramada Investimentos.

Participation in the Company's share capital

Pursuant to the requirements of articles 16 and 20 of the Securities Code (Código de Valores Mobiliários) and article 448 of the Commercial Companies Code, the Directors inform that, in accordance with the notifications received, the companies and/or individuals that hold qualified participations exceeding 2%, 5%, 10%, 20%, 33% and 50% of the voting rights, and accordingly with the notifications received in head office of F. Ramada Investimentos are as follows:

Number of Direct % of the voting
Exceeding 2% of the voting rights shares held rights
Maria João Fernandes Vieira de Matos 518,677 2.02%
Exceeding 5% of the voting rights Number of
shares held
Direct % of the voting
rights
Domingos José Vieira de Matos 2,550,131 9.95%
Pedro Miguel Matos Borges de Oliveira 1,402,072 5.47%
Number of Direct % of the voting
Exceeding 10% of the voting rights shares held rights
ACTIUM CAPITAL - S.G.P.S., S.A. (a) 3,837,582 14.97%

BOARD OF DIRECTORS' REPORT – 1 st SEMESTER 2014

RELATÓRIO DO CONSELHO DE ADMINIST

(a) the 3.837.582 shares correspond to the total shares of F. Ramada - Investimentos, SGPS, S.A. held by ACTIUM CAPITAL – S.G.P.S., S.A., where the Director Paulo Jorge dos Santos Fernandes is director and dominant shareholder.

Number of Direct % of the voting
Exceeding 15% of the voting rights shares held rights
CADERNO AZUL - S.G.P.S., S.A. (a) 4.895.721 19,09%
PROMENDO - S.G.P.S., S.A. (b) 4,514,271 17.61%

(a) the 4.895.721 shares correspond to the total amount of F. Ramada Investimentos shares that are held by CADERNO AZUL – S.G.P.S., S.A, in which the Director João Manuel Matos Borges de Oliveira is director and shareholder. (b) the 4,514,271 shares of F. Ramada - Investimentos, SGPS, S.A. held by PROMENDO – SGPS, S.A., in which the Director Ana Rebelo de Carvalho Menéres de Mendonça is director and dominant shareholder.

F. Ramada Investimentos was not informed of any participation exceeding 20% of the voting rights.

STATEMENT UNDER ARTICLE 246, PARAGRAPH 1, C) OF THE SECURITIES CODE

The signatories individually declare that, to their knowledge, the Condensed Financial Statements were prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the European Union, for the purpose of interim reporting, and the other accounting documents required by law or regulation, give a truthful and appropriate image, in all material respects, of the assets and liabilities, financial position and the consolidated results of F. Ramada Investimentos, S.G.P.S., S.A. and of the companies included in the consolidation perimeter, and that the accurately Interim Director's Report explains the activity evolution, performance and financial position of F. Ramada Investimentos, SGPS, SA and the companies included in the consolidation perimeter, and contains a description of the major risks and uncertainties that they face.

DECLARATION OF RESPONSABILITY

The members of the Board of Directors of F. Ramada Investimentos, S.G.P.S., S.A. declare that they assume responsibility for this information and assure that the items included herein are true and that, to the best of their knowledge, there are no omissions.

Under paragraph 3 of article 8 of the Securities Code, the members of the Board of Directors of F. Ramada Investimentos, SGPS, S.A. declare that the accounts that are part of this interim report have not been subject to a Limited Review.

As required by article 21 of Decree-Law 411/91, of 17 October, the Board of Directors informs that there are no overdue debts to the State, namely with respect to Social Security.

CLOSING REMARKS

We don't want to conclude without thanking our suppliers, financial institutions and other partners of the group for their trust in our organization. We would also like to thank the External Auditor for the advice and assistance provided and the Statutory Audit Board for the continued monitoring of our operations.

Porto, 30 July 2014

Board of directors

João Manuel Matos Borges de Oliveira

______________________________________

______________________________________

______________________________________ Paulo Jorge dos Santos Fernandes

Domingos José Vieira de Matos

______________________________________ Pedro Miguel Matos Borges de Oliveira

Pedro Macedo Pinto de Mendonça

______________________________________ Ana Rebelo de Carvalho Menéres de Mendonça

______________________________________

Article 447 of the Portuguese Companies Act and Article 14, paragraph 7 of Portuguese Securities Regulator (CMVM) Regulation nr. 05/2008

Disclosure of shares and other securities held by members of the Board of Directors and by those discharging managerial responsibilities, as well as by people closely connected with them (article 248 B of the Securities Code), and disclosure of the respective transactions during the semester.

Number of shares Number of shares
Member of the Board of Directors as of 31-Dec-2013 Aquisitions Disposals Others as of 30-Jun-2014
João Manuel Matos Borges de Oliveira (allocation via CADERNO AZUL - SGPS, S.A.) 4,895,721 - - - 4,895,721
Paulo Jorge dos Santos Fernandes (allocation via ACTIUM CAPITAL - SGPS, S.A.) 3,427,924 409,658 - - 3,837,582
Domingos José Vieira de Matos 2,495,181 12,950 - 42,000 2,550,131
Pedro Miguel Matos Borges de Oliveira 1,402,072 - - - 1,402,072
Ana Rebelo de Carvalho Menéres de Mendonça (allocation via PROMENDO - SGPS, S.A.) 3,946,648 567,623 - 4,514,271
Pedro Macedo Pinto de Mendonça 213,125 - - - 213,125

João Manuel Matos Borges de Oliveira (allocation via CADERNO AZUL - SGPS, S.A.)

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 4,895,721
30-Jun-2014 - - - - 4,895,721

Paulo Jorge dos Santos Fernandes (allocation via ACTIUM CAPITAL - SGPS, S.A.)

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 3,427,924
11-Mar-2014 Purchase 45,598 2.100000 NYSE Euronext Lisbon 3,473,522
11-Mar-2014 Purchase 6,045 2.120000 NYSE Euronext Lisbon 3,479,567
11-Mar-2014 Purchase 2,000 2.120000 NYSE Euronext Lisbon 3,481,567
11-Mar-2014 Purchase 2,000 2.130000 NYSE Euronext Lisbon 3,483,567
12-Mar-2014 Purchase 1,041 2.149000 NYSE Euronext Lisbon 3,484,608
12-Mar-2014 Purchase 5,500 2.150000 NYSE Euronext Lisbon 3,490,108
12-Mar-2014 Purchase 1,000 2.143000 NYSE Euronext Lisbon 3,491,108
12-Mar-2014 Purchase 3,500 2.143000 NYSE Euronext Lisbon 3,494,608
12-Mar-2014 Purchase 3,000 2.140000 NYSE Euronext Lisbon 3,497,608
12-Mar-2014 Purchase 1,500 2.140000 NYSE Euronext Lisbon 3,499,108
12-Mar-2014 Purchase 2,000 2.177000 NYSE Euronext Lisbon 3,501,108
12-Mar-2014 Purchase 3,561 2.180000 NYSE Euronext Lisbon 3,504,669
12-Mar-2014 Purchase 250 2.170000 NYSE Euronext Lisbon 3,504,919
12-Mar-2014 Purchase 2,000 2.170000 NYSE Euronext Lisbon 3,506,919
12-Mar-2014 Purchase 2,250 2.180000 NYSE Euronext Lisbon 3,509,169
13-Mar-2014 Purchase 25 2.140000 NYSE Euronext Lisbon 3,509,194
13-Mar-2014 Purchase 2,000 2.170000 NYSE Euronext Lisbon 3,511,194
13-Mar-2014 Purchase 3,000 2.195000 NYSE Euronext Lisbon 3,514,194
13-Mar-2014 Purchase 1,000 2.180000 NYSE Euronext Lisbon 3,515,194
13-Mar-2014 Purchase 1,595 2.180000 NYSE Euronext Lisbon 3,516,789
13-Mar-2014 Purchase 490 2.199000 NYSE Euronext Lisbon 3,517,279
13-Mar-2014 Purchase 639 2.199000 NYSE Euronext Lisbon 3,517,918
13-Mar-2014 Purchase 50 2.200000 NYSE Euronext Lisbon 3,517,968
Date Nature Volume Price (€) Location Number of shares
13-Mar-2014 Purchase 900 2.200000 NYSE Euronext Lisbon 3,518,868
13-Mar-2014 Purchase 1,850 2.210000 NYSE Euronext Lisbon 3,520,718
13-Mar-2014 Purchase 2,000 2.210000 NYSE Euronext Lisbon 3,522,718
13-Mar-2014 Purchase 1,000 2.201000 NYSE Euronext Lisbon 3,523,718
13-Mar-2014 Purchase 2,150 2.201000 NYSE Euronext Lisbon 3,525,868
13-Mar-2014 Purchase 850 2.201000 NYSE Euronext Lisbon 3,526,718
13-Mar-2014 Purchase 3,150 2.201000 NYSE Euronext Lisbon 3,529,868
13-Mar-2014 Purchase 3,000 2.201000 NYSE Euronext Lisbon 3,532,868
13-Mar-2014 Purchase 1,000 2.201000 NYSE Euronext Lisbon 3,533,868
13-Mar-2014 Purchase 14,200 2.200000 NYSE Euronext Lisbon 3,548,068
13-Mar-2014 Purchase 305 2.210000 NYSE Euronext Lisbon 3,548,373
13-Mar-2014 Purchase 80 2.220000 NYSE Euronext Lisbon 3,548,453
13-Mar-2014 Purchase 716 2.220000 NYSE Euronext Lisbon 3,549,169
14-Mar-2014 Purchase 1,450 2.191000 NYSE Euronext Lisbon 3,550,619
14-Mar-2014 Purchase 5,050 2.191000 NYSE Euronext Lisbon 3,555,669
14-Mar-2014 Purchase 19 2.221000 NYSE Euronext Lisbon 3,555,688
14-Mar-2014 Purchase 33 2.221000 NYSE Euronext Lisbon 3,555,721
14-Mar-2014 Purchase 257 2.240000 NYSE Euronext Lisbon 3,555,978
14-Mar-2014 Purchase 2,232 2.240000 NYSE Euronext Lisbon 3,558,210
14-Mar-2014 Purchase 265 2.248000 NYSE Euronext Lisbon 3,558,475
14-Mar-2014 Purchase 1,404 2.249000 NYSE Euronext Lisbon 3,559,879
14-Mar-2014 Purchase 1,250 2.250000 NYSE Euronext Lisbon 3,561,129
14-Mar-2014 Purchase 5,000 2.250000 NYSE Euronext Lisbon 3,566,129
14-Mar-2014 Purchase 2,000 2.250000 NYSE Euronext Lisbon 3,568,129
14-Mar-2014 Purchase 63 2.221000 NYSE Euronext Lisbon 3,568,192
14-Mar-2014 Purchase 750 2.250000 NYSE Euronext Lisbon 3,568,942
14-Mar-2014 Purchase 1,750 2.260000 NYSE Euronext Lisbon 3,570,692
14-Mar-2014 Purchase 250 2.260000 NYSE Euronext Lisbon 3,570,942
14-Mar-2014 Purchase 1,750 2.260000 NYSE Euronext Lisbon 3,572,692
14-Mar-2014 Purchase 2,000 2.260000 NYSE Euronext Lisbon 3,574,692
Purchase 2.480000 NYSE Euronext Lisbon
08-Apr-2014 Purchase 7,267
600
2.480000 NYSE Euronext Lisbon 3,581,959
08-Apr-2014 Purchase 2.490000 NYSE Euronext Lisbon 3,582,559
08-Apr-2014 1,000 NYSE Euronext Lisbon 3,583,559
08-Apr-2014 Purchase 2,000 2.490000 3,585,559
08-Apr-2014 Purchase 1,862 2.500000 NYSE Euronext Lisbon 3,587,421
08-Apr-2014 Purchase 679 2.500000 NYSE Euronext Lisbon 3,588,100
08-Apr-2014 Purchase 175 2.499000 NYSE Euronext Lisbon 3,588,275
08-Apr-2014 Purchase 625 2.499000 NYSE Euronext Lisbon 3,588,900
08-Apr-2014 Purchase 1,999 2.500000 NYSE Euronext Lisbon 3,590,899
08-Apr-2014 Purchase 500 2.500000 NYSE Euronext Lisbon 3,591,399
11-Apr-2014 Purchase 1,100 2.520000 NYSE Euronext Lisbon 3,592,499
11-Apr-2014 Purchase 500 2.525000 NYSE Euronext Lisbon 3,592,999
11-Apr-2014 Purchase 2,000 2.540000 NYSE Euronext Lisbon 3,594,999
11-Apr-2014 Purchase 2,400 2.560000 NYSE Euronext Lisbon 3,597,399
11-Apr-2014 Purchase 2,000 2.540000 NYSE Euronext Lisbon 3,599,399
11-Apr-2014 Purchase 1,000 2.560000 NYSE Euronext Lisbon 3,600,399
11-Apr-2014 Purchase 1,000 2.543000 NYSE Euronext Lisbon 3,601,399
11-Apr-2014 Purchase 580 2.543000 NYSE Euronext Lisbon 3,601,979
11-Apr-2014 Purchase 2,000 2.570000 NYSE Euronext Lisbon 3,603,979
11-Apr-2014 Purchase 4,779 2.630000 NYSE Euronext Lisbon 3,608,758
11-Apr-2014 Purchase 2,000 2.630000 NYSE Euronext Lisbon 3,610,758
11-Apr-2014 Purchase 2,000 2.630000 NYSE Euronext Lisbon 3,612,758

Paulo Jorge dos Santos Fernandes (allocation via ACTIUM CAPITAL - SGPS, S.A.)

APPENDIX

Paulo Jorge dos Santos Fernandes (allocation via ACTIUM CAPITAL - SGPS, S.A.)

RELATÓRIO DO CONSELHO DE ADMINIST

Date Nature Volume Location Number of shares
Price (€)
30-May-2014 Purchase
Purchase
6
500
2.160000
2.280000
NYSE Euronext Lisbon
NYSE Euronext Lisbon
3,612,764
30-May-2014 Purchase 2.290000 NYSE Euronext Lisbon 3,613,264
30-May-2014 Purchase 1,138
600
2.300000 NYSE Euronext Lisbon 3,614,402
30-May-2014 Purchase 150 2.300000 NYSE Euronext Lisbon 3,615,002
30-May-2014 Purchase 2.300000 NYSE Euronext Lisbon 3,615,152
30-May-2014
02-Jun-2014
Purchase 5,000 2.310000 NYSE Euronext Lisbon 3,620,152
02-Jun-2014 Purchase 2,000
50
2.281000 NYSE Euronext Lisbon 3,622,152
3,622,202
02-Jun-2014 Purchase 637 2.301000 NYSE Euronext Lisbon 3,622,839
02-Jun-2014 Purchase 2.330000 NYSE Euronext Lisbon
02-Jun-2014 Purchase 2,000 2.321000 NYSE Euronext Lisbon 3,624,839
02-Jun-2014 Purchase 2,000 2.321000 NYSE Euronext Lisbon 3,626,839
02-Jun-2014 Purchase 5,641 2.370000 NYSE Euronext Lisbon 3,632,480
02-Jun-2014 Purchase 2,000 2.380000 NYSE Euronext Lisbon 3,634,480
03-Jun-2014 Purchase 1,720
51
2.321000 NYSE Euronext Lisbon 3,636,200
03-Jun-2014 Purchase 2.370000 NYSE Euronext Lisbon 3,636,251
03-Jun-2014 Purchase 2,000
500
2.370000 NYSE Euronext Lisbon 3,638,251
03-Jun-2014 Purchase 2,000 2.380000 NYSE Euronext Lisbon 3,638,751
3,640,751
04-Jun-2014 Purchase 2,000 2.400000 NYSE Euronext Lisbon 3,642,751
04-Jun-2014 Purchase 2,000 2.371000 NYSE Euronext Lisbon 3,644,751
04-Jun-2014 Purchase 3,980 2.371000 NYSE Euronext Lisbon 3,648,731
04-Jun-2014 Purchase 200 2.401000 NYSE Euronext Lisbon 3,648,931
04-Jun-2014 Purchase 11,800 2.401000 NYSE Euronext Lisbon 3,660,731
04-Jun-2014 Purchase 2,000 2.490000 NYSE Euronext Lisbon 3,662,731
04-Jun-2014 Purchase 10,000 2.500000 NYSE Euronext Lisbon 3,672,731
04-Jun-2014 Purchase 100 2.500000 NYSE Euronext Lisbon 3,672,831
04-Jun-2014 Purchase 1,900 2.500000 NYSE Euronext Lisbon 3,674,731
04-Jun-2014 Purchase 12,000 2.520000 NYSE Euronext Lisbon 3,686,731
04-Jun-2014 Purchase 2,530 2.491000 NYSE Euronext Lisbon 3,689,261
04-Jun-2014 Purchase 2,000 2.530000 NYSE Euronext Lisbon 3,691,261
04-Jun-2014 Purchase 15,000 2.530000 NYSE Euronext Lisbon 3,706,261
04-Jun-2014 Purchase 1,000 2.491000 NYSE Euronext Lisbon 3,707,261
04-Jun-2014 Purchase 200 2.491000 NYSE Euronext Lisbon 3,707,461
04-Jun-2014 Purchase 600 2.491000 NYSE Euronext Lisbon 3,708,061
05-Jun-2014 Purchase 250 2.501000 NYSE Euronext Lisbon 3,708,311
05-Jun-2014 Purchase 5,730 2.501000 NYSE Euronext Lisbon 3,714,041
05-Jun-2014 Purchase 9,800 2.520000 NYSE Euronext Lisbon 3,723,841
05-Jun-2014 Purchase 250 2.516000 NYSE Euronext Lisbon 3,724,091
05-Jun-2014 Purchase 9,750 2.516000 NYSE Euronext Lisbon 3,733,841
05-Jun-2014 Purchase 4,500 2.520000 NYSE Euronext Lisbon 3,738,341
05-Jun-2014 Purchase 4,500 2.520000 NYSE Euronext Lisbon 3,742,841
05-Jun-2014 Purchase 250 2.525000 NYSE Euronext Lisbon 3,743,091
05-Jun-2014 Purchase 4,514 2.525000 NYSE Euronext Lisbon 3,747,605
06-Jun-2014 Purchase 1,292 2.599000 NYSE Euronext Lisbon 3,748,897
06-Jun-2014 Purchase 2,000 2.600000 NYSE Euronext Lisbon 3,750,897
06-Jun-2014 Purchase 66 2.600000 NYSE Euronext Lisbon 3,750,963
06-Jun-2014 Purchase 134 2.600000 NYSE Euronext Lisbon 3,751,097
06-Jun-2014 Purchase 200 2.600000 NYSE Euronext Lisbon 3,751,297
06-Jun-2014 Purchase 4,200 2.600000 NYSE Euronext Lisbon 3,755,497
06-Jun-2014 Purchase 15 2.610000 NYSE Euronext Lisbon 3,755,512
Date Nature Volume Price (€) Location Number of shares
20-Jun-2014 Purchase 1,000 2.910000 NYSE Euronext Lisbon 3,756,512
20-Jun-2014 Purchase 9,000 2.910000 NYSE Euronext Lisbon 3,765,512
20-Jun-2014 Purchase 400 2.920000 NYSE Euronext Lisbon 3,765,912
20-Jun-2014 Purchase 2,000 2.930000 NYSE Euronext Lisbon 3,767,912
20-Jun-2014 Purchase 10,000 2.959000 NYSE Euronext Lisbon 3,777,912
23-Jun-2014 Purchase 2,000 2.940000 NYSE Euronext Lisbon 3,779,912
23-Jun-2014 Purchase 15,180 2.979000 NYSE Euronext Lisbon 3,795,092
23-Jun-2014 Purchase 3,400 2.980000 NYSE Euronext Lisbon 3,798,492
23-Jun-2014 Purchase 2,000 2.980000 NYSE Euronext Lisbon 3,800,492
23-Jun-2014 Purchase 590 2.980000 NYSE Euronext Lisbon 3,801,082
24-Jun-2014 Purchase 1,000 2.980000 NYSE Euronext Lisbon 3,802,082
24-Jun-2014 Purchase 500 2.988000 NYSE Euronext Lisbon 3,802,582
24-Jun-2014 Purchase 25,000 2.989000 NYSE Euronext Lisbon 3,827,582
24-Jun-2014 Purchase 2,000 2.990000 NYSE Euronext Lisbon 3,829,582
24-Jun-2014 Purchase 10 2.990000 NYSE Euronext Lisbon 3,829,592
24-Jun-2014 Purchase 1,990 2.990000 NYSE Euronext Lisbon 3,831,582
24-Jun-2014 Purchase 10 2.990000 NYSE Euronext Lisbon 3,831,592
24-Jun-2014 Purchase 1,990 2.990000 NYSE Euronext Lisbon 3,833,582
24-Jun-2014 Purchase 10 2.990000 NYSE Euronext Lisbon 3,833,592
24-Jun-2014 Purchase 1,990 2.990000 NYSE Euronext Lisbon 3,835,582
24-Jun-2014 Purchase 2,000 2.990000 NYSE Euronext Lisbon 3,837,582
30-Jun-2014 - - - - 3,837,582

Paulo Jorge dos Santos Fernandes (allocation via ACTIUM CAPITAL - SGPS, S.A.)

RELATÓRIO DO CONSELHO DE ADMINIST

Pedro Macedo Pinto de Mendonça

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 213,125
30-Jun-2014 - - - - 213,125

Domingos José Vieira de Matos

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 2,495,181
05-Jun-2014 Purchase 5,000 2.520000 NYSE Euronext Lisbon 2,500,181
05-Jun-2014 Purchase 200 2.520000 NYSE Euronext Lisbon 2,500,381
05-Jun-2014 Purchase 5,000 2.520000 NYSE Euronext Lisbon 2,505,381
05-Jun-2014 Purchase 250 2.525000 NYSE Euronext Lisbon 2,505,631
10-Jun-2014 Purchase 2,000 2.920000 NYSE Euronext Lisbon 2,507,631
10-Jun-2014 Purchase 500 2.930000 NYSE Euronext Lisbon 2,508,131
13-Jun-2014 Donation 42,000 2.980000 NYSE Euronext Lisbon 2,550,131
30-Jun-2014 - - - - 2,550,131

Pedro Miguel Matos Borges de Oliveira

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 1,402,072
30-Jun-2014 - - - - 1,402,072

APPENDIX

Date Nature Volume Price (€) Location Number of shares
31-Dec-2013 - - - - 3,946,648
24-Feb-2014 Purchase 5,780 1.814000 NYSE Euronext Lisbon 3,952,428
25-Feb-2014 Purchase 5,464 2.006000 NYSE Euronext Lisbon 3,957,892
25-Feb-2014 Purchase 10,000 1.970000 NYSE Euronext Lisbon 3,967,892
26-Feb-2014 Purchase 5,154 2.026000 NYSE Euronext Lisbon 3,973,046
26-Feb-2014 Purchase 20,000 1.980000 NYSE Euronext Lisbon 3,993,046
27-Feb-2014 Purchase 10,000 2.055000 NYSE Euronext Lisbon 4,003,046
27-Feb-2014 Purchase 2,440 2.120000 NYSE Euronext Lisbon 4,005,486
28-Feb-2014 Purchase 2,347 2.186000 NYSE Euronext Lisbon 4,007,833
28-Feb-2014 Purchase 5,952 2.103800 NYSE Euronext Lisbon 4,013,785
28-Feb-2014 Purchase 18,500 2.101000 NYSE Euronext Lisbon 4,032,285
03-Mar-2014 Purchase 885 2.340000 NYSE Euronext Lisbon 4,033,170
04-Mar-2014 Purchase 2,325 2.228000 NYSE Euronext Lisbon 4,035,495
05-Mar-2014 Purchase 12,500 2.170000 NYSE Euronext Lisbon 4,047,995
06-Mar-2014 Purchase 11,500 2.140000 NYSE Euronext Lisbon 4,059,495
07-Mar-2014 Purchase 14,500 2.120000 NYSE Euronext Lisbon 4,073,995
07-Mar-2014 Purchase 16,700 2.120000 NYSE Euronext Lisbon 4,090,695
10-Mar-2014 Purchase 13,900 2.090000 NYSE Euronext Lisbon 4,104,595
11-Mar-2014 Purchase 25,300 2.120000 NYSE Euronext Lisbon 4,129,895
13-Mar-2014 Purchase 15,600 2.19 NYSE Euronext Lisbon 4,145,495
17-Mar-2014 Purchase 9,800 2.29 NYSE Euronext Lisbon 4,155,295
18-Mar-2014 Purchase 7,700 2.360000 NYSE Euronext Lisbon 4,162,995
19-Mar-2014 Purchase 8,700 2.370000 NYSE Euronext Lisbon 4,171,695
21-Mar-2014 Purchase 9,700 2.370000 NYSE Euronext Lisbon 4,181,395
26-May-2014 Purchase 25,000 2.430000 NYSE Euronext Lisbon 4,206,395
26-May-2014 Purchase 2,000 2.260000 NYSE Euronext Lisbon 4,208,395
27-May-2014 Purchase 11,000 2.300000 NYSE Euronext Lisbon 4,219,395
27-May-2014 Purchase 15,500 2.220000 NYSE Euronext Lisbon 4,234,895
28-May-2014 Purchase 12,800 2.270000 NYSE Euronext Lisbon 4,247,695
28-May-2014 Purchase 15,500 2.270000 NYSE Euronext Lisbon 4,263,195
30-May-2014 Purchase 13,500 2.360000 NYSE Euronext Lisbon 4,276,695
30-May-2014 Purchase 16,000 2.240000 NYSE Euronext Lisbon 4,292,695
02-Jun-2014 Purchase 12,500 2.310000 NYSE Euronext Lisbon 4,305,195
02-Jun-2014 Purchase 15,200 2.340000 NYSE Euronext Lisbon 4,320,395
03-Jun-2014 Purchase 9,500 2.340000 NYSE Euronext Lisbon 4,329,895
03-Jun-2014 Purchase 13,300 2.370000 NYSE Euronext Lisbon 4,343,195
04-Jun-2014 Purchase 14,300 2.420000 NYSE Euronext Lisbon 4,357,495
04-Jun-2014 Purchase 15,700 2.500000 NYSE Euronext Lisbon 4,373,195
05-Jun-2014 Purchase 4,675 2.510000 NYSE Euronext Lisbon 4,377,870
05-Jun-2014 Purchase 16,500 2.520000 NYSE Euronext Lisbon 4,394,370
06-Jun-2014 Purchase 16,500 2.620000 NYSE Euronext Lisbon 4,410,870
06-Jun-2014 Purchase 5,801 2.580000 NYSE Euronext Lisbon 4,416,671
10-Jun-2014 Purchase 14,900 2.840000 NYSE Euronext Lisbon 4,431,571
16-Jun-2014 Purchase 13,400 2.870000 NYSE Euronext Lisbon 4,444,971
17-Jun-2014 Purchase 11,900 2.910000 NYSE Euronext Lisbon 4,456,871
19-Jun-2014 Purchase 15,400 2.880000 NYSE Euronext Lisbon 4,472,271
20-Jun-2014 Purchase 15,900 2.910000 NYSE Euronext Lisbon 4,488,171
23-Jun-2014 Purchase 15,900 2.940000 NYSE Euronext Lisbon 4,504,071
30-Jun-2014 Purchase 10,200 2.960000 NYSE Euronext Lisbon 4,514,271
30-Jun-2014 - - - - 4,514,271

Ana Rebelo de Carvalho Menéres de Mendonça (allocation via PROMENDO - SGPS, S.A.)

RELATÓRIO DO CONSELHO DE ADMINIST

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF 30 JUNE 2014 AND 31 DECEMBER 2013

(Translation of financial statements originally issued in Portuguese - Note 18)

(Amounts expressed in Euro)

ASSETS Notes 30.06.2014 31.12.2013
NON CURRENT ASSETS:
Investment properties 6 85,977,075 85,937,120
Tangible assets 5,059,399 5,391,709
Intangible assets 88,373 108,103
Investments in associates 4 12,196,970 11,500,000
Investments available for sale 4 2,559,946 2,609,500
Deferred tax assets 7 2,021,808 2,021,808
Total non current assets 107,903,571 107,568,240
CURRENT ASSETS:
Inventories 27,763,048 19,076,750
Customers 34,657,829 33,498,406
State and other public entities 1,152,608 723,414
Other debtors 822,396 396,070
Other current assets 396,171 248,317
Cash and cash equivalents 8 9,946,637 11,662,934
Total current assets 74,738,689 65,605,891
Total assets 182,642,260 173,174,131
SHAREHOLDERS' FUNDS AND LIABILITIES
SHAREHOLDERS' FUNDS:
Share capital 9 25,641,459 25,641,459
Own shares 9 (1,641,053) (1,641,053)
Legal reserve 5,637,034 5,637,034
Monetary conversion reserves (484,186) (615,513)
Other reserves 24,813,770 21,480,207
Consolidated net profit for the period 3,446,754 6,218,227
Total shareholders' funds attributable to the parent company shareholders 57,413,778 56,720,361
Non-controlling interests - -
Total Shareholders' funds 57,413,778 56,720,361
LIABILITIES:
NON CURRENT LIABILITIES
Bank loans 10 43,574,033 47,110,488
Provisions 11 1,031,920 1,107,580
Deferred tax liabilities 7 51,655 51,655
Total non current liabilities 44,657,608 48,269,723
CURRENT LIABILITIES:
Bank loans 10 3,391,494 4,292,109
Other loans 10 33,452,113 30,673,239
Derivatives 12 - -
Suppliers 18,982,831 14,554,674
State and other public entities 4,619,412 3,469,203
Other creditors 1,072,571 1,150,702
Other current liabilities 19,052,453 14,044,120
Total current liabilities 80,570,874 68,184,047
Total Shareholders' funds and liabilities 182,642,260 173,174,131

The accompanying notes form an integral part of the consolidated financial statements.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS BY NATURES FOR THE SIX MONTHS AND THREE MONTHS PERIODS ENDED AS OF 30 JUNE 2014 AND 2013 (Translation of financial statements originally issued in Portuguese - Note 18) (Amounts expressed in Euro)

SIX MONTHS PERIOD ENDED AS OF THREE MONTHS PERIOD ENDED AS OF
Notes 30.06.2014 30.06.2013 30.06.2014 30.06.2013
Sales 54,040,277 45,136,728 28,725,221 23,601,160
Services rendered 5,042,584 4,927,320 2,672,816 2,467,116
Other income 368,455 216,477 193,007 106,945
Cost of sales (32,550,350) (27,469,910) (18,063,601) (14,540,404)
External supplies and services (10,612,947) (8,342,078) (5,361,583) (4,360,318)
Payroll expenses (7,489,621) (6,509,802) (3,740,277) (3,240,367)
Amortization and depreciation (801,721) (621,429) (401,442) (311,029)
Provisions and impairment losses 11 (579,669) (670,018) (223,782) (439,991)
Other expenses (506,974) (446,625) (287,282) (202,336)
Financial expenses 13 (1,888,194) (1,983,532) (980,299) (964,922)
Financial income 13 9,918 12,235 7,200 288
Profit before income tax 5,031,758 4,249,367 2,539,978 2,116,143
Income tax (1,585,004) (1,274,810) (800,093) (634,843)
Consolidated net profit 3,446,754 2,974,557 1,739,885 1,481,300
Attributable to:
Parent company's shareholders 14 3,446,754 2,974,557 1,739,885 1,481,300
Earnings per share:
Basic 14 0.15 0.12 0.07 0.06
Diluted 14 0.15 0.12 0.07 0.06

The accompanying notes form an integral part of the consolidated financial statements.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX AND THREE MONTHS PERIODS ENDED AS OF 30 JUNE 2014 AND 2013 (Translation of financial statements originally issued in Portuguese - Note 18)

(Amounts expressed in Euro)

SIX MONTHS PERIOD ENDED AS OF THREE MONTHS PERIOD ENDED AS OF
Notes 30.06.2014 30.06.2013 30.06.2014 30.06.2013
Net consolidated profit for the period 3,446,754 2,974,557 1,739,885 1,481,300
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations
131,327 (138,854) 109,639 (47,208)
Other comprehensive income for the period 131,327 (138,854) 109,639 (47,208)
Total comprehensive income for the period 3,578,081 2,835,703 1,849,524 1,434,092
Attributable to:
Parent company´s shareholders
Non-controlling interests
3,578,081
-
2,835,703
-
1,849,524
-
1,434,092
-

The accompanying notes form an integral part of the consolidated statements of comprehensive income.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' FUNDS FOR THE SIX MONTHS PERIODS ENDED AS OF 30 JUNE 2014 AND 2013 (Translation of financial statements originally issued in Portuguese - Note 18) (Amounts expressed in Euro)

Monetary
Other reserves
Total
conversion
and retained
Share capital
Own shares
Legal reserve
reserves
earnings
Net profit
funds
Balance as of 1 January 2013
25,641,459
(1,641,053)
5,637,034
(553,080)
17,388,193
6,168,972
Total comprehensive consolidated income for the period
-
-
-
(138,853)
-
2,974,557
Appropriation of the consolidated net profit for 2012:
Transfer to legal reserve and other reserves
-
-
268,404
-
5,900,568
(6,168,972)
Distributed dividends
-
-
-
-
(2,076,958)
-
Balance as of 30 June 2013
25,641,459
(1,641,053)
5,905,438
(691,933)
21,211,803
2,974,557
Balance as of 1 January 2014
25,641,459
(1,641,053)
5,637,034
(615,513)
21,480,207
6,218,227
Total comprehensive consolidated income for the period
-
-
-
131,327
-
3,446,754
Atributable to the parent company´s Shareholders
Shareholder's
52,641,526
2,835,703
-
(2,076,958)
53,400,271
56,720,361
3,578,081
Transfer to other reserves
-
-
-
-
6,218,227
(6,218,227)
Distributed dividends
-
-
-
-
(2,884,664)
-
Appropriation of the consolidated net profit for 2013: -
(2,884,664)
Balance as of 30 June 2014
25,641,459
(1,641,053)
5,637,034
(484,186)
24,813,770
3,446,754
57,413,778

The accompanying notes form an integral part of the consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS AND THREE MONTHS PERIODS ENDED AS OF 30 JUNE 2014 AND 2013 (Translation of financial statements originally issued in Portuguese - Note 18)

(Amounts expressed in Euro)

SIX MONTHS PERIODS ENDED THREE MONTHS PERIODS ENDED
Notes 30.06.2014 30.06.2013 30.06.2014 30.06.2013
Operating activities:
Collections from customers 68,645,893 61,723,812 30,906,344 27,863,407
Payments to suppliers (52,306,377) (40,940,130) (28,664,918) (21,279,820)
Payments to personnel (4,880,139) 11,459,377 (4,457,813) 16,325,869 (2,451,220) (209,794) (2,234,595) 4,348,992
Other collections/payments relating to operating activities (3,714,771) (5,291,992) (977,239) (3,257,219)
Corporate income tax (1,204,056) (4,918,827) (216,456) (5,508,448) (1,117,842) (2,095,081) (167,235) (3,424,454)
Cash flow from operating activities (1) 6,540,550 10,817,421 (2,304,875) 924,538
Investment activities:
Collections relating to:
Investments 139,861 - - -
Tangible assets 48,094 394,814 8,277 31,980
Investment properties - 602,700 - -
Interest and similar income 9,632 197,587 8,898 1,006,412 8,893 17,170 1,735 33,715
Payments relating to:
Investments 8 (897,417) (3,383,059) (721,415) (182,471)
Investment properties (44,224) (538,195) - (538,195)
Intangible assets (22,112) (1,043) (16,269) 17
Tangible assets (773,237) (1,736,990) (391,815) (4,314,112) (358,756) (1,096,440) (193,799) (914,448)
Cash flow from investment activities (2) (1,539,403) (3,307,700) (1,079,270) (880,733)
Financing activities:
Collections relating to:
Loans obtained 1,814,421 1,814,421 290,000 290,000 1,814,421 1,814,421 290,000 290,000
Payments relating to:
Dividends (2,884,664) (2,076,958) (2,884,664) (2,076,958)
Interest and similar costs (2,272,145) (3,147,991) (492,577) (483,927)
Loans obtained (5,542,108) (10,698,917) (4,456,883) (9,681,832) (1,586,221) (4,963,462) 577,208 (1,983,677)
Cash flow from financing activities (3) (8,884,496) (9,391,832) (3,149,041) (1,693,677)
Cash and cash equivalents at the beginning of the period 8 8,629,080 7,855,422 11,287,606 7,588,453
Effect of exchange rate changes 52,602 (51,736) 43,913 (17,006)
Variation of cash and cash equivalents: (1)+(2)+(3) (3,883,350) (1,882,111) (6,533,187) (1,649,872)
Cash and cash equivalents at the end of the period 8 4,798,332 5,921,575 4,798,332 5,921,575

The accompanying notes form an integral part of the consolidated statement of cash flows.

F. RAMADA INVESTIMENTOS, SGPS, S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

1. INTRODUCTORY NOTE

F. Ramada Investimentos, SGPS, S.A. ("F. Ramada" or "Company") is a Company incorporated in 1 June 2008, has its head-office located at Rua do General Norton de Matos, 68, r/c - Porto, Portugal and its shares are listed in the NYSE Euronext Lisbon. Its main activity is the management of investments.

F. Ramada was incorporated as a result of the reorganization process of Altri, SGPS, S.A. by demerging the steel sector and storage systems business management area, namely the participation held in F. Ramada – Aços e Indústrias, S.A. representative of the voting rights of the mentioned company. The restructuring involved a simple demerger operation as defined by Article 118, 1.a), of the Commercial Companies Code ("Código das Sociedades Comerciais").

Due to this process, Altri, SGPS, S.A. equity share corresponding to the equity holdings management business unit for the sector of steel and storage systems, including all other resources (such as human resources, assets and liabilities) related to that business unit, was detached to Ramada.

Currently, F. Ramada is the parent company of a group of companies listed in Note 4 (designated as "F. Ramada Group"), and through this financial holdings structure, focuses its operations in (i) steel trade, (ii) storage systems sales, sector in which the Group already presents a significant international presence, and (iii) real estate.

As of 30 June 2014 and 31 December 2013, the Group developed its activity in Portugal, France, United Kingdom and Belgium.

The consolidated financial statements of F. Ramada Group are presented in Euro (with rounding to units), which is the currency used by the Group in its operations and, as such, considered to be its functional currency.

The consolidated financial statements were prepared in accordance with the accounting policies defined by the International Financial Reporting Standards and in accordance with IAS 34 – Interim Financial Reporting.

2. MAIN ACCOUNTING POLICIES AND BASIS OF PRESENTATION

The consolidated financial statements as of 30 June 2014 were prepared in accordance with the accounting policies defined by the International Financial Reporting Standards and in accordance with IAS 34 – Interim Financial Reporting, and include the statement of financial position, the income statement, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows, as well as selected notes to the financial statements.

The accounting policies adopted in the preparation of the consolidated financial statements of F. Ramada are consistent with the accounting policies used in the preparation of the financial statements presented for the year ended as of 31 December 2013.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF ERRORS

During the period there were no changes in the accounting policies and no material mistakes related with previous periods were identified.

F. RAMADA INVESTIMENTOS, SGPS, S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

4. INVESTMENTS

The companies included in the consolidated financial statements by the full consolidation method, its headquarters, percentage of participation held and main activity as of 30 June 2014, are as follows:

Designation Headquarters Percentage of
participation
held
Activity
Parent company:
F. Ramada Investimentos, SGPS, S.A. Oporto Holding
F. Ramada Group
F. Ramada, Aços e Indústrias, S.A. Ovar 100% Steel commercialization
Universal Afir – Aços Especiais e Ferramentas, S.A. Ovar 100% Steel commercialization
F. Ramada – Produção e Comercialização de
Estruturas Metálicas de Armazenagem, S.A.
Ovar 100% Production and commercialization of
storage systems
F. Ramada II, Imobiliária, S.A. Ovar 100% Real estate
F. Ramada, Serviços de Gestão, Lda. Ovar 100% Administration and management
services
Storax Equipements, S.A. Paris, France 100% Commercialization of storage systems
Storax Racking Systems, Ltd. Bromsgrove,
United Kingdom
100% Commercialization of storage systems
Storax Benelux, S.A. Belgium 100% Commercialization of storage systems

All the above companies were included in the consolidated financial statements of F. Ramada Group in accordance with the full consolidation method.

Investments in associated companies

As of 30 June 2014, the caption "Investment in associates" includes, essentially, the shares owned by F. Ramada Investimentos, SGPS, S.A. in Base Holding SGPS, S.A.'s capital. This entity has its head office in Oporto and heads a group of companies which operate in the healthcare sector, namely, complementary means of diagnosis and treatment.

During the first half of 2014, the Group purchased 1.9% of the share capital of the above mentioned company at a cost of 696,970 Euros and, as a result, increased its stake to the nominal amount of 12,196,970 Euros (11,500,000 Euros as of the 31 December 2013), which represents 34.8% (32.9% as of 31 December 2013) of its share capital.

In virtue of the fact that this additional acquisition occurred in two stages, and of the fact that F. Ramada Group did not have access to the interim consolidated financial statements of Base Holding SGPS, S.A., the equity method was carried out with respect to 31 December of 2013 and 30 June of 2014 based on the corresponding financial information as of 31 December of 2013. This procedure did not produce any materially relevant effects on the attached consolidated financial statements.

Investments available for sale

As of 30 June 2014 and 31 December 2013 the caption "Investments available for sale" and respective impairment losses can be detailed as follows:

30.06.2014 31.12.2013
Gross book value
Accumulated impairment losses (Note 11)
6,085,270
(3,525,324)
5,884,824
(3,275,324)
2,559,946 2,609,500

As of 30 June 2014, the changes occurred under the caption "Investments available for sale" can be detailed as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

31.12.2013 Decreases Increases 30.06.2014
Investments 514,652 - - 514,652
Loans 5,370,172 - 200,446 5,570,618
Impairment losses (Note 11) (3,275,324) - (250,000) (3,525,324)
2,609,500 - (49,554) 2,559,946

As of 30 June 2014, this caption includes, mainly, a stake of 12.3% in the equity of Consumo em Verde – Biotecnologia das Plantas, S.A. and a stake of 4% in the equity of Converde S.A., as well as loans granted.

As of 30 June 2014 and 31 December 2013 the consolidated financial statements include impairment losses that were recorded for the investments listed above in the amount of 3,525,324 Euros and 3,275,324 Euros, respectively (Note 11).

Financial investments included under the caption "Investments available for sale" are recorded at acquisition cost, less related impairment losses.

5. CHANGES IN CONSOLIDATION PERIMETER

During the six months period ended as of 30 June 2014 no changes in the Group's consolidation perimeter occurred.

6. INVESTMENT PROPERTIES

Investment properties held by F. Ramada Group relate to land rented to third parties or under operational lease. These contracts have an average length of 20 years, with the possibility of an additional period of 10 years if certain events occur. Investment properties are measured at acquisition cost. The movement that occurred in this caption during the six months period ended as of 30 June 2014 and the year ended as of 31 December 2013 is as follows:

30.06.2014 31.12.2013
Opening balance 85,937,120 86,103,423
Aquisitions 39,955 153,197
Disposals - (319,500)
Closing balance 85,977,075 85,937,120

Given the land characteristics (land leased to third parties for forestry activity), frequent and comparable market transactions for this type of assets do not occur. Accordingly, the Board of Directors considers that it is not possible to reliably estimate the fair value of the land, for which it is recorded at acquisition cost. However, it is the Board of Directors believes that, given the amount of rents collected annually, the market value of these assets will not be significantly different from its book value.

Part of this land (amounting to, approximately, 70 million Euro) was given as collateral for certain loans obtained.

7. CURRENT AND DEFERRED INCOME TAXES

In accordance with current legislation, the tax returns are subject to review and correction by the tax authorities over a period of four years (five years for Social Security), except when tax losses have occurred, tax benefits have been granted, or inspections, complaints or disputes are ongoing. In these cases, depending on the circumstances, the above referred period deadlines can be extended or suspended. Therefore, the tax returns of F. Ramada and its subsidiaries for the years 2010 to 2014 may still be subject to review.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

The Board of Directors of F. Ramada believes that any potential corrections arising from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the consolidated financial statements as of 30 June 2014.

The movement occurred in deferred tax assets and liabilities in the six months periods ended as of 30 June 2014 and 2013 was as follows:

30.06.2014
Deferred tax assets Deferred tax liabilities
Balance as of 01.01.2014 2,021,808 51,655
Effects on income statement:
Other effects - -
Balance as of 30.06.2014 2,021,808 51,655
30.06.2013
Deferred tax assets Deferred tax liabilities
Balance as of 01.01.2013 2,038,236 65,275
Effects on income statement:
Other effects (2,322) -
Balance as of 30.06.2013 2,035,914 65,275

8. CASH AND CASH EQUIVALENTS

As of 30 June 2014 and as of 31 December 2013 the caption "Cash and cash equivalents" included in the consolidated statement of financial position can be detailed as follows:

30.06.2014 31.12.2013
Cash 15,518 16,322
Bank deposits 9,931,119 11,646,612
9,946,637 11,662,934
Bank overdrafts (Note 10) (5,148,305) (3,033,854)
Cash and cash equivalents 4,798,332 8,629,080

Payments for financial investments

During the first half of 2014, payments for financial investments were the following:

Value of the transaction Amount paid
Aquisitions
Investments available for sale (Note 4) 897,417 897,417
897,417 897,417

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

9. SHARE CAPITAL

As of 30 June 2014 and 31 December 2013, F. Ramada's fully subscribed and paid up capital consisted of 25,641,459 shares with a nominal value of 1 Euro each. As of that date, F. Ramada Investimentos, SGPS, S.A. holds 2.564.145 own shares, corresponding to 9.999996% of the share capital of the Company, acquired by 1.641.053 Euros.

Additionally, as of 30 June 2014 and 31 December 2013 there were no entities holding a share in the subscribed capital of, at least, 20%.

10. BANK LOANS AND OTHER LOANS

As of 30 June 2014 and 31 December 2013, the captions "Bank loans" and "Other loans" can be detailed as follows:

30.06.2014 31.12.2013
Current Non current Current Non current
Bank loans 3,391,494 43,444,661 4,292,109 46,930,414
Bank loans 3,391,494 43,444,661 4,292,109 46,930,414
Commercial paper 15,250,000 - 15,250,000 -
Current account 11,250,000 - 10,900,000 -
Bank overdrafts 5,148,305 - 3,033,854 -
Factoring 1,720,308 - 1,405,885 -
Financial Leasings 83,500 129,372 83,500 180,074
Other loans 33,452,113 129,372 30,673,239 180,074
36,843,607 43,574,033 34,965,347 47,110,488

As of 30 June 2014 and 31 December 2013 there were no differences between the book value and nominal value of the loans obtained.

During the six months period ended as of 30 June 2014 these loans bear interest related costs at normal market rates depending on the nature and term of the credit obtained.

During the six months period ended as of 30 June 2014 and the year ended as of 31 December 2013 the Group did not enter into any loan default.

Additionally, as of 30 June 2014 there are no "covenants" associated to the disclosed loans.

11. MOVEMENT IN PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses for the six months periods ended as of 30 June 2014 and 2013 may be detailed as follows:

30.06.2014
Provisions Impairment losses in
accounts receivable
Impairment losses in
investments
Impairment losses in
inventories
Total
Opening balance 1,107,580 24,654,499 3,275,324 296,835 29,334,237
Exchange rate variation 661 - - - 661
Increases 71,551 259,620 250,000 - 581,171
Reversals - - - (1,502) (1,502)
Utilizations (147,872) - - - (147,872)
Closing balance 1,031,920 24,914,119 3,525,324 295,333 29,766,696

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

30.06.2013
Provisions Impairment losses in
accounts receivable
Impairment losses in
investments
Impairment losses in
inventories
Total
Opening balance 1,075,249 24,877,961 1,786,371 306,557 28,046,138
Exchange rate variation (1,957) - - - (1,957)
Increases 45,426 624,592 - - 670,018
Utilizations - - - - -
Closing balance 1,118,718 25,502,553 1,786,371 306,557 28,714,199

The increases and reversals recorded in provisions and impairment losses for the six months periods ended as of 30 June 2014 and 2013 were recorded in the profit and loss statement caption "Provisions and impairment losses".

The amount recorded in the caption "Provisions" as of 30 June 2014 relates to the Board of Directors' best estimate to cover possible losses arising from legal actions in progress and other liabilities.

12. DERIVATIVE FINANCIAL INVESTMENTS

In order to reduce the exposure to interest rate volatility, the Group has engaged in interest rate swap contracts. These contracts were evaluated in accordance with its fair value as of the statement of financial position date, being the corresponding amount recognized in the caption "Derivatives".

Derivative financial instruments recorded in the financial statements as of 31 December 2013 correspond to interest rate swaps, related with the loans to finance the Group. The Board of Directors believes that these derivatives do not fully comply with the requirements set by IAS 39 – Financial Instruments: Recognition and Measurement, to qualify as hedge instruments, and, as such, the changes in fair value of these derivatives have been recorded in the income statement for the year.

The movement during the six months period ended as of 30 June 2014 and the year ended as of 31 December 2013 can be presented as follows:

30.06.2014 31.12.2013
Opening balance - (34,873)
Increases / (decreases) - 34,873
Closing balance - -

13. FINANCIAL RESULTS

The consolidated financial results for the six months periods ended as of 30 June 2014 and 2013 can be detailed as follows:

30.06.2014 30.06.2013
Financial expenses:
Interest (1,526,915) (1,620,935)
Other financial expenses (361,279) (362,597)
(1,888,194) (1,983,532)
Financial income:
Interest 2,426 12,235
Other financial income 7,492 -
9,918 12,235

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

The interests paid and recognised in the profit and loss statement for the six months periods ended as of 30 June 2014 and 2013 are totally related with loans obtained.

Likewise, the interest income recorded in the financial statements for the six months periods ended as of 30 June 2014 and 2013 results mainly from investments made during the year.

14. EARNINGS PER SHARE

Earnings per share for the six months periods ended as of 30 June 2014 and 2013 were determined taking into consideration the following amounts:

30.06.2014 30.06.2013
Net profit considered for the computation of basic and diluted earnings 3,446,754 2,974,557
Number of shares 25,641,459 25,641,459
Number of ow n shares 2,564,145 2,564,145
Weighted average number of shares used to compute the basic and diluted earnings per share 23,077,314 23,077,314
Earnings per share
Basic 0.15 0.13
Diluted 0.15 0.13

15. RELATED PARTIES

The main balances with related parties as of 30 June 2014 and 2013 are with Altri Group and may be detailed as follows:

30.06.2014
Accounts Accounts Receivable
Related parties Receivable Payable Rents
Altri Group - - 3,078,000
30.06.2013
Accounts Accounts Receivable
Related parties Receivable Payable Rents
Altri Group - - 3,004,998

Apart from the companies included in the consolidation (Note 4), the companies considered to be related parties as of 30 June 2014, can be presented as follows:

Cofihold, SGPS, S.A. Alteria, SGPS, S.A. Caderno Azul, SGPS, S.A. Actium Capital, SGPS, S.A. Elege Valor, SGPS, S.A. Livre Fluxo, SGPS, S.A. Malva – Gestão Imobiliária, S.A. Préstimo – Prestígio Imobiliário, S.A. Sociedade Imobiliária Porto Seguro – Investimentos Imobiliários, S.A. Torres da Luz – Investimentos imobiliários, S.A. Valor Autêntico, SGPS, S.A. Promendo, SGPS, S.A. Jardins de França S.A. Destak Brasil Editora S.A. Altri - Energias Renováveis, SGPS, S.A. Altri Florestal, S.A. Altri Sales, S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2014

(TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18)

(Amounts expressed in Euro)

Altri, Participaciones Y Trading, S.L. Altri, SGPS, S.A. Caima Energia – Empresa de Gestão e Exploração de Energia, S.A. Caima Indústria de Celulose, S.A. Captaraiz Unipessoal, Lda. Celbi – Celulose da Beira Industrial, S.A. Celbinave – Tráfego e Estiva SGPS, Unipessoal, Lda. Celtejo – Empresa de Celulose do Tejo, S.A. Celulose do Caima, SGPS, S.A. Inflora – Sociedade de Investimentos Florestais, S.A. Invescaima – Investimentos e Participações, SGPS, S.A. Pedro Frutícola, Sociedade Frutícola, S.A. Viveiros do Furadouro Unipessoal, Lda. AdCom Media Anúncios e Publicidade, S.A. Cofina – Eventos e Comunicação, S.A. Cofina Media, SGPS, S.A. Cofina, SGPS, S.A. Destak Brasil – Empreendimentos e Participações, S.A. Edirevistas – Sociedade Editorial, S.A. Edisport – Sociedade de Publicações, S.A. Efe Erre – Participações, SGPS, S.A. Grafedisport – Impressão e Artes Gráficas, S.A. Mediafin, SGPS, S.A. Mercados Globais – Publicação de Conteúdos, Lda. Metronews – Publicações, S.A. Presselivre – Imprensa Livre, S.A. Transjornal – Edição de Publicações, S.A. VASP – Sociedade de Transportes e Distribuições, Lda. Web Works – Desenvolvimento de Aplicações para Internet, S.A. Base Holding SGPS, S.A. Consumo em Verde – Biotecnologia das Plantas, S.A. Converde S.A.

16. SEGMENT INFORMATION

In accordance with the origin and nature of the income generated by the Group, the main segments identified are as follows:

  • Industry includes the commercialization of steel and storage systems, as well as support services (being the latest a residual activity);
  • Real estate includes the assets and activities related to the Group's real estate activity.

The segregation of activities by segments as of 30 June 2014 and 2013 is made up as follows:

30.06.2014 30.06.2013
Industry Real estate Industry Real estate
Net operating income
Resulting from operations w ith external customers 56,335,769 3,115,546 47,240,054 3,040,471
Resulting from operations w ith other segments 4,176 647,328 4,176 625,440
Operating Cash-flow (a) 5,222,101 2,489,655 4,346,493 2,495,599
Amortisation and depreciation 624,307 177,414 391,869 229,560
Operating profit 4,597,793 2,312,241 3,954,624 2,266,039
Total assets 89,981,110 92,661,150 74,027,269 93,697,024
Total liabilities 46,869,263 78,359,219 33,059,141 81,264,881
Investment of the period (b) 1,293,890 - 3,593,478 153,197

(a) Earnings before interests, taxes, depreciation and amortisation

(b) - Tangible assets, intangible assets and investments additions

F. RAMADA INVESTIMENTOS, SGPS, S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2014 (TRANSLATION OF NOTES ORIGINALLY ISSUED IN PORTUGUESE – NOTE 18) (Amounts expressed in Euro)

17. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 30 July 2014.

18. EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese in accordance with International Financial Reporting Standards (IFRS/IAS), some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.

The Chartered Accountant The Board of Directors

João Manuel Matos Borges de Oliveira – President

Paulo Jorge dos Santos Fernandes

Pedro Macedo Pinto de Mendonça

Domingos José Vieira de Matos

Pedro Miguel Matos Borges de Oliveira

Ana Rebelo de Carvalho Menéres de Mendonça

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